Smartwool’s Post

Secondhand marketing still growing - not as aggressively as previously forecasted: "Last year, the company said the worldwide secondhand goods market would reach $350 billion by 2027. In its new report, the resale company lowered its prediction to $324 billion by 2027. The U.S. secondhand market is more on track with last year’s projections: ThredUp in 2023 said the market would grow to $70 billion by 2027, and the latest report estimates that it will reach $69 billion by that year. But that number is down significantly from ThredUp’s 2022 prediction that the U.S. secondhand market would reach $82 billion by 2026." Reporting by Tatiana Walk-Morris for Retail Dive #circularretail #circulareconomy #retailinnovation #reducereuserecycle

"The resale market is vast and growing, and that’s why so many retailers are jumping on the bandwagon," says Mark Ryski, Author, CEO & Founder of HeadCount Corporation. "Not only does resale help mitigate the negative climate impact of returns, but resale programs can also help offset some of the costs associated with managing returns of unwanted goods. And while there are benefits to resale, it does creates a whole new set of challenges for retailers, most notably managing this inventory. The goods need to be ingested, inspected, fixed and then re-merchandised and sold. It’s very labor intensive. That all said, I believe the benefits outweigh the cost." Check out more insights from one of the retail industry’s leading experts - https://buff.ly/3qRfPx2. More great comments on this topic by RetailWire's BrainTrust experts including: Neil Saunders, Mark Self, Gene Detroyer, Liza Amlani, Jeff Sward, • Shep Hyken, James Tenser, David Biernbaum, and Oliver Guy 🚀.

Wish I could be a fly on the wall to listen to the shouting match between the Chief Merchant and the GM of resale when they debate how the resale product is presented at scale [pause for a moment and think big]. Sure when you sell 50 resale products a month who cares how good they look, they don't cannibalize sales. But at some point when you sell tens of thousands every month and the customer gets the same experience for new and used why on earth would they buy new? Retailers need to think through the long-term which is to build another channel that caters to a different segment of customers and needs. Making resale and retail look identical confuses the value proposition of both and ultimately leads to an inferior outcome. That's why sale racks are jumbled together in the back of the store, outlet stores are off freeways in far flung places, and product is stacked three feet high at Costco. Differentiated value propositions are critical to building a profitable brand over time and anybody who thinks resale is somehow different is kidding themselves. https://lnkd.in/gmyh_6bk

After helping brands deliver resale experiences to their customers for five years, it's apparent that Clean Out programs are the gateway to resale. Check out Retail Dive's latest article to learn why brands tend to enter resale with take back programs, and why many of them are now increasing their investments. Plus hear first-hand from Michael Stars CEO Suzanne Lerner on the brand’s test-and-learn approach to resale leveraging thredUP’s RaaS. https://bit.ly/3ZTKVDV

Resale programs are on the rise in '24, but which major retailers are holding back? Read or listen to this Retail Brew resource here:

Moreover, brands and retailers must also consider the potential cannibalization of their primary sales channels. By promoting resale, they run the risk of diverting customers away from purchasing new products at full price. #AdobeCommerce

The past several months, it's been fun to partner with Beni and Kate Sanner in writing and bringing this series to life. The Resale Puzzle series has mapped the various business models and stakeholders within the secondhand fashion industry, spotlighting the roles they play and how it all works together. See below for each model we dug into & give it a read! Introduction: A Roadmap of the Resale Industry Part 1: Thrift and Consignment Stores Part 2: Online Resale Marketplaces Part 3: The Rise of Full-Time Resellers  Part 4: Brands Getting Into Resale Part 5: Resale As A Service Companies Part 6: Textile Recycling Facilities Part 7: Fashion Designers Part 8: Stylists Part 9: The Role of the Customer Part 10: Predictions for the Future — What comes next? All installments linked here: https://lnkd.in/gvFQtdbe I'm excited about what Beni is doing for the secondhand industry and honored to get to write this for them!

With consumers still facing economic pressures, they're increasingly turning to secondhand shopping to save on retail expenses. PYMNTS' Intelligence’s study, which drew from a survey of more than 2,300 U.S. consumers in December, found that 43% of consumers purchased a secondhand product in 2023, plus, 19% of consumers said they increased their secondhand purchasing during the year. Brands are now aiming to seize this opportunity by establishing direct resale sites through platforms like Trove. Read about how Trove works with brands such as Levi Strauss & Co., Canada Goose, Cotopaxi, REI, and others to operate their own branded secondhand sales platforms and do their part in the fight for sustainability. #circulareconomy #secondhand #retailsustainability

The resale sector struggles with terminology, as words like "used" can carry negative connotations. Companies often opt for terms like "pre-owned," "pre-loved," "reconditioned," "refurbished," or "vintage" to make their offerings more appealing. For instance, REI uses "Re/Supply" to indicate their section for pre-owned gear, which can be confusing for customers not familiar with the term. Clear and consistent labeling could help reduce this confusion and make it easier for customers to find what they want. https://lnkd.in/g4msSfmy